Gold and silver prices are currently in a volatile phase, with prices being majorly driven by geopolitical developments around the US-Iran war and its consequences on crude oil prices, inflation, and the US Federal Reserve's subsequent stance on rate cuts. Analysts believe that gold and silver could face some pressure in the holiday-shortened week ahead, as market participants closely monitor developments in US-Iran peace negotiations, movements in crude oil prices, and the upcoming monetary policy decision from the US Federal Reserve. Domestic commodity exchanges will remain shut on Friday in observance of Maharashtra Day, though MCX will be open for the evening session.
Gold Rate Today: Physical Gold Demand
In India, gold premiums rose last week to their highest level in two and a half months as domestic supplies tightened. Meanwhile, buying activity in China also picked up. Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, declined by 0.2 per cent to 966.30 metric tonnes on Thursday.
Gold Rate Today: Gold Slips as Stronger Dollar and Oil-Led Inflation Concerns Weigh
Gold prices edged lower on Monday as a firmer US dollar reduced the metal's appeal. At the same time, rising crude oil prices intensified concerns about inflation and reinforced expectations that interest rates could remain elevated for an extended period, particularly as peace negotiations between the United States and Iran showed little progress. Spot gold declined 0.3 per cent to $4,694.26 per ounce as of 0059 GMT. The precious metal had already fallen 2.5 per cent last week, ending a four-week run of gains. US gold futures for June delivery dropped 0.9 per cent to $4,697.60 per ounce.
Gold Rate Today: Volatile Week Ahead?
Looking ahead, analysts believe gold may find support at lower levels, though it remains susceptible to further downside if the US dollar stays strong and geopolitical tensions subside. Silver, given its dual nature as both a precious and industrial metal, is expected to remain relatively more volatile. However, any escalation in tensions in West Asia, especially around the Strait of Hormuz, or dovish signals from major central banks, could once again spark fresh buying interest in both metals.
Gold Rate Today: Gold Prices Last Week
On the Multi Commodity Exchange of India, gold futures fell by Rs 1,910, or 1.23 per cent, ending last week at Rs 1.54 lakh per 10 grams. Silver futures recorded a steeper decline, tumbling Rs 12,506, or 4.9 per cent, to settle at Rs 2.44 lakh per kilogram. Analysts pointed out that losses in domestic gold prices were partly cushioned by the weakening rupee, which depreciated by around 1.4 per cent over the past week. In overseas markets, Comex gold declined by $138.7, or 2.8 per cent, to close at $4,740.9 per ounce for the week. Silver also retreated sharply, losing $5.4, or 6.6 per cent, to finish at $76.41 per ounce.
Gold Rate Today: What Will Drive Gold Prices This Week?
Pranav Mer, Vice President, EBG – Commodity and Currency Research at JM Financial Services, said investors will remain focused on the progress of talks between the United States and Iran, particularly for their implications on crude oil, precious metals, and the broader financial markets. Mer said gold surrendered part of its recent gains after failing to break above the $5,000-per-ounce mark in international markets. Prices were also pressured by profit-booking following a strong rally of 10 to 12 per cent over the previous four weeks. He added that continued strength in the US dollar and Treasury yields also weighed on precious metals. Better-than-expected US retail sales data, weekly jobless claims, and consumer sentiment figures provided further support to the greenback, limiting the appeal of gold and silver. Mer further observed that central bank buying and selling trends across the globe remained mixed. Meanwhile, uncertainty over the future direction of interest rates—whether further hikes or eventual cuts—amid rising commodity-led inflation is likely to keep bullion markets volatile.
On the global macroeconomic front, traders will also be tracking policy announcements from the Federal Reserve, the Bank of Japan, the Bank of England, and the European Central Bank. In addition, several important US economic indicators, including housing data, Personal Consumption Expenditures (PCE) inflation figures, and consumer confidence readings, will be closely monitored. Factory activity data from major global economies later in the week is also expected to influence market sentiment. Analysts noted that the April 29 meeting of the Federal Open Market Committee will be especially significant for precious metals. As it is expected to be the final meeting chaired by Jerome Powell, both the policy statement and the subsequent press conference are likely to attract heightened attention from bullion traders.
